Republic may hoist For Sale sign

TROUBLED Coffee Republic has unveiled plans to dispose of 18 poorly performing bars - and launched a full strategic review that could lead to its putting up the For Sale sign over the whole company.

Co-founder Bobby Hashemi, who recently returned as chairman, is hoping to stem the group's decline. He said: 'We will consider all options.'

Its bankers have revised their terms, but only until December when they will reassess the group's finances. Losses ballooned to £7.5m before tax from £2.4m last time, including one-off charges. Coffee Republic added that it made profits of £1m, before interest, tax, depreciation, amortisation and one-off charges, from losses of £350,000 a year earlier.

Turnover rose for the year ended March 32% to £27.8m, but acquisitions represented all of that growth. On a like-for-like basis, sales fell 6.8%, compared with 8.6% growth the previous year.

The 18 bars accounted for 10% of its sales. Coffee Republic took a £5.25m one-off charge to cover the sell-offs, and a charge of £400,000 for restructuring and job losses. It will be left with 90 bars following the sale.